CFRE EXAM SCRIPT COMPLETE QUESTIONS
AND CORRECT ANSWERS LEARNING
RESOURCE
●● acknowledgment
Answer: Written expression of gratitude for gift or service.
●● acknowledgment letter
Answer: A letter sent by a donee, or on behalf of a donee, to the donor,
expressing appreciation for a gift and identifying the use that will be
make of the gift. An acknowledgment letter may be a form letter, but it is
usually personalized.
●● acquisition mailing (or prospect mailing)
Answer: A mailing to prospects to acquire new members or donors.
●● advance gifts
Answer: Gifts given or pledged in advance of a public announcement of
a campaign. Advance gifts are solicited before a campaign is announced
because the success or failure of a campaign may depend on the size of
the advance gifts.
●● advisory board
,Answer: A group of infl uential and prominent individuals whose
association with a development program is calculated to lend luster and
implied endorsement of the program ' s goals and objectives.
●● analysis
Answer: That section of a study that deals with the factors essential to
success in a fundraising program; principally the case for support,
leadership potential, and fi elds of support.
●● annual giving
Answer: Annually repeating gift programs; seeking funds on annual or
recurring basis from the same constituency; income is generally used for
operating budget support.
●● annual report
Answer: A yearly report of fi nancial and organizational conditions
prepared by the management of an organization.
●● anonymous gift
Answer: A gift whose announcement, by specifi c wish of the donor, can
include only the amount; the name of the donor is withheld.
●● appreciated real property and securities gift
,Answer: Gifts of real estate or securities, which when held long term are
deductible for federal income tax purposes at the full fair market value
with no capital gain on the appreciation. However, the appreciation is a
tax preference item, and proper counsel should be obtained to evaluate
whether this would have alternative minimum tax consequences.
●● associates
Answer: A term used variously to describe a group of individuals who
may be supporting an institution through contributions at a prescribed
level, serving in a special advisory capacity, or serving as a sponsoring
body for special institutional events.
●● audit
Answer: An internal evaluation of development procedures as practiced
by a nonprofi t institution or agency; normally conducted by professional
fundraising counsel.
●● bargain sale
Answer: The sale of property at less than its fair market value.
Frequently, a person will sell property to a 501(c)(3) organization or
institution at a " bargain " price (for example, the individual ' s cost as
opposed to its market value). The transaction is partly a gift and partly a
sale.
●● benefactor
, Answer: One who makes a major gift to an institution or agency; also,
an arbitrary classifi cation of contributors whose gifts are above a certain
level, which is calculated to single them out as a group and to stimulate
similar giving by others.
●● benefit event
Answer: A form of fundraising that involves the organization and
staging of a special event for charitable purposes; all proceeds above
expenses are designated as a contribution to the charitable institution
concerned.
●● benevolence
Answer: A disposition to do good; an act of kindness; a generous gift.
●● bequest
Answer: A transfer, by will, of personal property such as cash, securities,
or other tangible property.
●● big gifts
Answer: A general term used to signify gifts in upper ranges, the precise
limits varying from institution to institution. Their importance is
emphasized in all fundraising campaigns.
●● board of directors
AND CORRECT ANSWERS LEARNING
RESOURCE
●● acknowledgment
Answer: Written expression of gratitude for gift or service.
●● acknowledgment letter
Answer: A letter sent by a donee, or on behalf of a donee, to the donor,
expressing appreciation for a gift and identifying the use that will be
make of the gift. An acknowledgment letter may be a form letter, but it is
usually personalized.
●● acquisition mailing (or prospect mailing)
Answer: A mailing to prospects to acquire new members or donors.
●● advance gifts
Answer: Gifts given or pledged in advance of a public announcement of
a campaign. Advance gifts are solicited before a campaign is announced
because the success or failure of a campaign may depend on the size of
the advance gifts.
●● advisory board
,Answer: A group of infl uential and prominent individuals whose
association with a development program is calculated to lend luster and
implied endorsement of the program ' s goals and objectives.
●● analysis
Answer: That section of a study that deals with the factors essential to
success in a fundraising program; principally the case for support,
leadership potential, and fi elds of support.
●● annual giving
Answer: Annually repeating gift programs; seeking funds on annual or
recurring basis from the same constituency; income is generally used for
operating budget support.
●● annual report
Answer: A yearly report of fi nancial and organizational conditions
prepared by the management of an organization.
●● anonymous gift
Answer: A gift whose announcement, by specifi c wish of the donor, can
include only the amount; the name of the donor is withheld.
●● appreciated real property and securities gift
,Answer: Gifts of real estate or securities, which when held long term are
deductible for federal income tax purposes at the full fair market value
with no capital gain on the appreciation. However, the appreciation is a
tax preference item, and proper counsel should be obtained to evaluate
whether this would have alternative minimum tax consequences.
●● associates
Answer: A term used variously to describe a group of individuals who
may be supporting an institution through contributions at a prescribed
level, serving in a special advisory capacity, or serving as a sponsoring
body for special institutional events.
●● audit
Answer: An internal evaluation of development procedures as practiced
by a nonprofi t institution or agency; normally conducted by professional
fundraising counsel.
●● bargain sale
Answer: The sale of property at less than its fair market value.
Frequently, a person will sell property to a 501(c)(3) organization or
institution at a " bargain " price (for example, the individual ' s cost as
opposed to its market value). The transaction is partly a gift and partly a
sale.
●● benefactor
, Answer: One who makes a major gift to an institution or agency; also,
an arbitrary classifi cation of contributors whose gifts are above a certain
level, which is calculated to single them out as a group and to stimulate
similar giving by others.
●● benefit event
Answer: A form of fundraising that involves the organization and
staging of a special event for charitable purposes; all proceeds above
expenses are designated as a contribution to the charitable institution
concerned.
●● benevolence
Answer: A disposition to do good; an act of kindness; a generous gift.
●● bequest
Answer: A transfer, by will, of personal property such as cash, securities,
or other tangible property.
●● big gifts
Answer: A general term used to signify gifts in upper ranges, the precise
limits varying from institution to institution. Their importance is
emphasized in all fundraising campaigns.
●● board of directors
